The month-on-month inflation rate has tumbled to 0,5%, giving strong signals of a positive inflationary outlook in the year ahead, Zimbabwe National Statistics Agency (Zimstat) reported Wednesday.

The stats agency said the inflation rate for the local unit tumbled to 0.5% in February 2025, shedding 10.0% on the January 2025 rate of 10,5% implying that prices as measured by the all items ZWG CPI, increased by an average of 0.5% from January 2025 to February 2025.

"The ZWG month-on-month Food and Non-Alcoholic Beverages inflation rate was 0.8 percent in February 2025, shedding 6.0 percentage points on the January 2025 rate of 6.8 percent while the month-on-month non-food inflation rate was 0.3 % shedding 4,3% on the January 2025 rate of 4,6%," said Zimsat.

Market watchers have credited the latest recovery to the tight Monetary Policy stance pursued by monetary authorities but warned that such economic trends could be signals of deeper problems in the economy such as reduced productive borrowing, and disposable incomes prompting very slow economic growth.

The policy measures, if not well managed, can also choke companies' capability to invest in new projects.

Zimstat said the US$ month-on-month inflation rate for the period stood at 0,2% in February 2025, shedding 11.3% on the January 2025 rate of 11,5% implying that prices as measured by the all items index increased by an average of 0,2% from January 2025 to February 2025.

The USD month-on-month Food and NonAlcoholic Beverages inflation rate was 0,2% in February 2025, shedding 16.6% on the January 2025 rate of 16,8%. The February 2025 USD month-on-month non-food inflation rate was 0.2 % shedding 8,9% on the January 2025 rate of 9,1%.

The USD year-on-year inflation rate (annual percentage change) for the month of February 2025 as measured by the all-items USD Consumer Price Index (CPI), was 15.1%.